From the perspective of discovering potential enterprises and their value. Under the condition of market economy, there are many industries, and different industries have different future prospects, some are sunrise industries, some are sunset industries, and some have not yet formed industries, but the future development prospects are very good; At the same time, even in the same industry, its internal competition is great, and the differences between different enterprises engaged in the same industry are also great. Therefore, for private equity investment funds, it is a knowledge to find industries with investment potential from many industries, and it is a university question to find enterprises with innovation ability, competitiveness and development potential from different enterprises in the same industry, and where their potential is. Therefore, private equity investment funds should be equipped with personnel with certain sensitivity and vision to related industries, find out the enterprises with investment value and their values from many enterprises with financing needs, and analyze them, so as to make a preliminary judgment on whether to invest.
From the perspective of risk prediction and risk avoidance. Before investing in a specific target company, investment funds know nothing about start-ups and entrepreneurs, which makes the information asymmetry between investors and entrepreneurs, and may lead investors to make wrong investment behaviors based on insufficient or untrue knowledge of facts. At the same time, due to unpredictable and uncontrollable external environmental factors such as the market and the continuous development and changes of enterprises themselves, there are many possibilities for the subsequent development of entrepreneurial enterprises, which correspondingly bring different risks to investors. Moreover, since the private equity investment fund itself will not participate in the daily operation and management of the target enterprise too deeply, after the investment is completed, investors will also face the problem of information asymmetry with entrepreneurs and the related risks brought by unethical behavior of entrepreneurs. Therefore, professionals are needed to help investors understand and analyze the target enterprise more comprehensively and truly, predict the possible non-market risks, other risks caused by information asymmetry and risks caused by unethical behaviors of entrepreneurs and management of the target enterprise more scientifically, and take reasonable preventive measures through system design. Therefore, private equity investment funds should be equipped with professional financial planners and legal personnel (or lawyers). Before investing, the financial planner will analyze the financial and asset status of the target enterprise, and the legal personnel (or lawyers) will analyze the target enterprise at the legal level, so that the fund can make investment decisions on the basis of relatively sufficient and true information. After the investment is completed, the financial planner will analyze the financial status of the target company so that the fund can take reasonable measures against the changes in the financial status of the target company. In addition, legal personnel (or lawyers) should design reasonable agreements and systems according to the actual situation of the enterprise and the possible subsequent risks before investing, and put forward suggestions and take necessary measures to the behavior of the target company or entrepreneur that may damage the fund after the investment is completed, so as to avoid the corresponding risks.
In addition, it is worth noting that when an investment fund decides to invest, it is also very important to determine the transaction consideration between the fund and the target enterprises and entrepreneurs. Simply put, how to determine the consideration is more in line with the principle of maximizing interests or not suffering financial losses. Generally speaking, the consideration is determined by considering the assets of the enterprise itself when the fund enters, the length of the investment period, the expected enterprise value when the fund exits, and the corresponding net present value, opportunity cost and internal rate of return. It is extremely professional to be able to comprehensively consider these factors and determine the fair consideration that should be paid when the fund invests, which is extremely important for the fund. Therefore, it is essential to equip the management team with professional financial planners.
To sum up, an excellent private equity investment fund management team should at least include a certain number of professionals, legal personnel and financial planners, who are the foundation and core of the team. Of course, an excellent team is not only a combination of these people on the material level, but also the essence of an excellent team. Therefore, the fund also needs an experienced comprehensive manager to coordinate the cooperative relationship between various professionals.
In addition, combined with the characteristics of fund operation itself, the number of fund investment projects, the number of funds managed by fund management companies and the number of managers, the fund management team can also operate in the form of project group system and department system according to the situation, so that the management team can manage the fund more effectively.